Financing Healthcare Issue in China



Introduction4

Transition from Traditional To Market Oriented Economy5

Organizations Linked with Healthcare in China5

Healthcare System in China6

Achieving Untied Nation Millennium Development Goals7

Healthcare problems in China7

Lack of Facilities in Rural Centre's7

Lack of Sanitation Facilities8

Overpopulation8

Lack of Quality Doctors and Physicians8

State of Women's Health in China9

Reproductive Health9

Healthcare indicators in China9

The Financing Issues of Healthcare in China10

Government Employees Health Insurance10

Labor Health Insurance11

RCMS11

Informal Health System12

Income Gap12

Overall Spending on Healthcare in China13

Ratio between Private and Public Spending13

Expenditure on Drugs and Pharmaceuticals14

Private Spending in China14

Contribution of Private Sector15

Financial Protection of the Healthcare Programs15

Insurance Sector16

Urban and Rural Social Insurance Schemes16

Coverage of the Insurance Policies17

Development of the Insurance Schemes17

Reforms to Create a Better System17

References19

Financing Healthcare Issue in China

Introduction

China is one of the fastest growing economies of the world. The country which started as an agricultural oriented economy has now transformed into one of the most advanced economies of the world. The population of China is around 1.1 billion and it is the most populated country in the world. The area that is being covered by China accounts for almost 9.6 million square kilometers (Zhang & Kanbur, 2005). When one looks at the history of China, the government policies that are being carried out over there and overall populations, it can be seen that health care problems that are being faced by China are unique in their sense. One needs to look at China with a unique perspective to completely understand the healthcare practices and policies that were being carried out there.

Looking at the way healthcare is ran in China, it has to be seen what the administrative structure in China is. There is a state council in People's Republic of China, which has pretty much the same responsibilities of central Government. The overall administration of all the 30 provinces, the top executive organization of the country does that. All the municipalities and eventually all the autonomous regions are under the jurisdiction of Central Government. When we look at the overall healthcare system that prevails in any country, it depends a lot on the economic, political and cultural background of that country.

Transition from Traditional To Market Oriented Economy

China has transformed itself from a traditional economy to a more market oriented and free market economy. As a result, healthcare has also converted from a public and social good to market good with the passage of time. When one looks at the overall health structure of China, it can be seen that due to the huge differences that are observed due to the difference in the economic growth and overall financing system. The allocation of the resources is done in such a manner that it has made the healthcare system of China a dual faced system. The urban centers are equipped with better resources while on the other hand, they are also facing organizational issues and overall cost control is a big issue. The rural system conversely is scarce when it comes to overall resources (Zhang & Kanbur, 2005).

Organizations Linked with Healthcare in China

Some of the main ...